Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

KEC International - Annual Report Analysis - Healthy outlook across business segment - Accumulate

Posted On: 2022-06-29 21:33:42 (Time Zone: IST)


Mr. Amit Anwani - Research Analyst at Prabhudas Lilladher Pvt. Ltd.

KEC International's (KEC) FY22 annual report analysis suggests that Non Transmission and Distribution (T&D) segments likely to be key growth driver going forward, specially driven by Civil and Railway segments, while T&D segment will be driven by international orders. Within T&D segment, KEC strengthened its position in India, SAARC, UAE, Saudi Arabia etc. with healthy order inflows. Railways segment has deepened its presence in technology-enabled areas of Urban Infrastructure with new orders in metro electrification, overhead electrification, third rail, power supply systems and track laying. Civil segment forayed into the public spaces segment with maiden orders to construct an airport and a high court complex. Cables continued its focus on new product development and has commercialized new cables for railways and large private utility. It has accelerated Oil & Gas (O&G) business by acquisition of Spur Infrastructure Pvt. Ltd.

We believe government spending on infrastructure will continue, thereby translating into healthy ordering activity across sectors such as transmission & distribution, railways, metros, water infrastructure etc. KEC is well placed to capitalize on this opportunity given 1) its presence across various business verticals, 2) strong OB position, 3) healthy execution track record and 4) strong management capability. The stock is currently trading at PE of 18.5x/12x FY23/24E. We maintain 'Accumulate' rating on stock with TP of Rs 451 (same as earlier) valuing it at PE of 13x FY24E.

Transmission and Distribution; International T&D drives order inflows: Order inflow came in at Rs74bn (down 6%), while revenue declined by ~10% to Rs69bn in FY22. Strengthened its presence in India with large orders of ~Rs15bn from PGCIL (under Tariff Based Competitive Bidding), private players and state utilities, including Green Energy Corridor projects.

Railway; Diversification on track: The business continued its growth momentum with revenue growth of 13% YoY to Rs39bn and order inflow growth of 45% YoY to Rs24bn. Delivered 23% of India's railway network electrified in FY22, totaling to 1,441 Route Kilometer (RKM) and commissioned track laying of 131 RKM.

Civil; Key growth driver going forward: This segment has become a key growth driver for the company in short span of time reporting a stellar revenue growth of ~76% YoY to Rs19bn and order inflow came in at Rs58bn. It expanded client portfolio in industrial sector with new orders in chemicals, minerals and FMCG segment. Also delivered 11 high rise residential towers in Bangalore and Pune.

Cables; New product development to drive growth: This segment reported revenue of Rs15.2bn, up 44% YoY in FY22, driven by railway cables (up 100%) and LT cables (up 45%). It exports cables and solutions to 35 countries, including 7 new countries. 40% of export business was contributed by new customers.

Oil and Gas; New growth segment: The segment reported a revenue of Rs1.8bn in FY22 and order inflow of Rs3bn. Successfully integrated operations of Spur Infrastructure into KEC post acquisition. Business is currently executing 20 projects.

Shares of KEC International Limited was last trading in BSE at Rs. 415.05 as compared to the previous close of Rs. 420.95. The total number of shares traded during the day was 30110 in over 1537 trades.

The stock hit an intraday high of Rs. 424.60 and intraday low of 412.00. The net turnover during the day was Rs. 12595486.00.


Click here to send ur comments or to feedback@equitybulls.com

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Gladiator Stocks - Minda Industries - ICICI Direct

Reliance Industries - Company Update - In fine fettle amidst global uncertainty - BUY

Sector Update - Sugar - ICICI Direct

Initiating Coverage - Hindustan Aeronautics Ltd - ICICI Direct

Rallis India - Company Update - Margin pressure likely to persist in near term..!! - Upgrade to 'BUY'

Indoco Remedies - Q4FY22 Result Update - In-line quarter; strong revenue guidance for US & EU mkt - Upgrade to 'BUY'

Indraprastha Gas - Q4FY22 Result Update - Impressive performance - BUY

Westlife Development - Q4FY22 Result Update - Approaching the tipping point; Buy for LT Gains

Reliance Research downgrades Bajaj Auto to Sell

NOCIL - Q4FY22 Result Update - Strong operating performance amidst challenges - BUY

Gujarat Gas - Company Update - Deftly negotiating through tough times - BUY

Orient Electric - Gaining market share via innovation: initiate with ADD - ICICI Securities

Manappuram Finance - Q4FY22 Result Update - Intense Competition Put Pressure on Yields - BUY

Derivatives Weekly View - June 24, 2022 - ICICI Direct

Stock Tales - Newgen Software - ICICI Direct

Weekly Report - June 25, 2022 - Mr. Mitul Shah - Head of Research at Reliance securities

Gladiator Stocks - Bosch - ICICI Direct

Management Meet Update - Sheela Foam - ICICI Direct

Gladiator Stocks - Mahindra & Mahindra - ICICI Direct

Banks - Modifications to PPI and its impact on cards - Negligible impact, if any, for stocks under coverage

LIC Housing Finance - Q4FY22 Result Update - Fixed rate liabilities could cushion NIM - BUY

Navneet Education - Q4FY22 Result Update - Growth levers in place - BUY

MPC Minutes: Jun-22: All eyes on inflation - Acuité Ratings

Nazara Technologies - Management Meet Update - Breaking through the ESports landscape - BUY

Sector update - Quick Service Restaurants - YES Securities

JK Lakshmi Cement - Q4FY22 Result Update - Strong performance; Valuations drive upgrade - Accumulate

Would it be wise to invest in a home early in your career?

Dr. Reddy's Laboratories - Analyst Meet Update - Multiple growth initiatives - BUY

Dhanuka Agritech - Management Meet Update - 1Q likely to be subdued; all hopes pinned on the monsoons - BUY

BUY Ipca Laboratories - Q4FY22 Result Update - Weak exports; gradual recovery

Acuité expects India's current account deficit to widen to more than USD 90 bn in FY23 - Acuité Macro Pulse

Inflationary concerns will continue to weigh on the pace of economic revival in FY23 - Acuité Macroeconomic Performance index

City Union Bank - Q4FY22 Result Update - Asset quality on the mend - BUY

Banks - BNPL - Early results are not that exciting as yet - Kotak

Acuité expects FY23 GDP growth estimate at 7.5% - Acuité Macro Pulse - Growth - May-22 Edition

Base factor pushes up IIP in Apr-22 to an 8-month high - Acuité Ratings

India Strategy & Q4FY22 Review - Long term growth prospects to overshadow near term uncertainties

India Equity Strategy - Quarterly flipbook: Q4FY22-Cost inflation driving downgrades

FMCG - D2C is here to stay; omni-channel the way forward - HDFC Securities

Automobile Sector - Monthly Quick View - May'22 - Steady Performance Improvement, backed by Gradual Rural Recovery

BFSI - New normal rate cycle; brace for transmission effects - HDFC Securities

SBI Cards and Payment Services - BUY - TP Rs. 1260 - YES SECURITIES

RBI frontloads rate hike amid increased inflationary headwinds - Acuité Ratings

Monetary Policy June 2022 - Axis MF Views

RBI Monetary Policy View - Mr. Dhiraj Relli, MD & CEO, HDFC Securities

Monetary Policy - entering the red zone - Anuj Puri, ANAROCK

Mr. Murali Ramakrishnan, MD &CEO, South Indian Bank on RBI Monetary Policy

Comments on RBI's MPC Policy Jun'22 - Acuité Ratings

Views on RBI Monetary Policy - June 2022

Bayer Cropscience - Q4FY22 Result Update - Healthy all round performance - BUY


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020